Reasons to Stay in Public Accounting Instead of Choosing Industry
For most people in the accounting profession, the conventional advice is to go into public accounting for a few years and then transition into industry as a senior or a manager. While no advice is 100% right for everyone, this works because most people get burnt out on the public accounting model after a few years. But the grass isn't always greener on the other side. Today, I'm going to share with you three reasons why you might choose to stay in public accounting instead of jumping ship to industry.
#1 - Vacation Blackout Dates
Now you might be thinking that I'm crazy for putting this as the number one reason, but it's true! When you work in public accounting, you are generally discouraged from having vacations during busy seasons, which generally go on for a couple months at a time. How is industry worse? The answer is monthly close. If you work in the accounting department at a company that requires timely financial reporting, you need to be there to support the monthly close process. Depending on the size of the industry company you work for, you may be the only person that can do your job in that process, which is happening 2 and 1/2 Weeks out of every month. So, between the two, the sentiment is the same: Don't take vacation while the company really needs you. However, in practice these lead to two different results. In public accounting, you work busy season hours and don't take vacations, but you can take a month off when it isn't busy during the months that are outside of busy season. In industry, it can be difficult to take a vacation longer than one week because of the monthly close calendar. I know plenty of people who would rather work busy season hours than be denied their annual international travel. If you are one of those people, public accounting might offer you a better schedule for your desired plans.
#2 - Being a Revenue Generator and Not a Cost Center
In 2024 and beyond, it's important to consider your job security as an accountant. While no job is 100% safe from economic downturns, making money for the company you work for helps maintain your employment in times of uncertainty. In public accounting, some or all of your role is designed to produce work that can be billed to a client. In industry, your role is usually designed to help keep the lights on. In recent years, outsourcing and offshoring have become more popular on the industry side, and many people don't want to put themselves in a position to be replaced because they are seen only as a cost. Accountants understand this dynamic because they are fundamentally business analysts and advisors. For some accountants, the knowledge that they are a revenue generator for their company gives them confidence and job satisfaction that cannot be matched in industry. If you're the type who values having that security, stick with the public accounting or consulting role!
#3 - Opportunities for Pay and Advancement
For better or for worse, public accounting firms tend to have an up or out mentality. The bright side of this is that public accounting firms usually have a way for employees to elevate themselves in their career and compensation. The same cannot be said for industry. While there are opportunities for advancement in industry, a company usually only needs one CFO, which means advancement is gated behind job hopping or the termination or retirement of others. For those that have Long-Term goals in industry roles, this isn't an issue. But if you're impatient like I am, public accounting might offer you more actionable opportunities for advancement as well as ways to earn more money. In addition to being compensated for their client service, public accounting employees can also monetize other skills with rewards for recruiting and sales. Most public accounting firms have clearly defined programs that reward bringing on new clients and staff. In industry, those opportunities are very rare for those in the accounting department.
Everyone's career path is different because everyone's career goals are different. The conventional advice that I mentioned at the top of this article about going into public accounting for a few years and then jumping into industry is still probably a good idea for most people, but don't just blindly follow it. Take the time to understand what is important to you and steer your career in the right direction. And lastly, don't forget that it's okay to change your mind! Depending on what's going on in your life, you may jump between public accounting and industry accounting to suit your shifting priorities. Just make sure you're making these moves in an informed and deliberate manner!